Increased R&D spending leads to boost in fixed capital investments!
The article shows that spending money on research and development (R&D) by companies leads to them investing in new equipment and buildings. This is because R&D helps create new products or services that need more production space. By looking at data from 1990 to 2014, the study found that increasing R&D spending by 1% results in a 0.4% to 0.6% increase in fixed capital investments. This means that investing in R&D not only helps the economy grow in the long run but also boosts the economy during slow periods.